Free childcare for 2 year olds

Find out if your 2 year old is eligible for free childcare and how to apply.

1 Overview

Free childcare (also known as free entitlement) is provided by the Government. It allows some 2 year olds access to free, good quality, flexible early education or childcare.

The activities you do at home enhance your child's all-round development. It is well documented that high quality early education can influence how well a child does at both primary and secondary school. Read more about the benefits of free childcare for you and your child.

Children can use up to 570 hours each year, or a maximum of 15 hours over 38 weeks, from a pre-school, nursery or accredited childminder registered to offer free places, along with some holiday playschemes meeting specific criteria.

A child is age eligible for free childcare for 2 year olds if born on or between:

  • 1 April and 31 August - you can apply online for free childcare for 2 year olds from 1 April. If the application is approved, you can then access a free place from the beginning of the term starting in September, following their second birthday.
  • 1 September and 31 December - you can apply online for free childcare for 2 year olds from 1 September. If the application is approved, you can then access a free place from the beginning of the term starting in January, following their second birthday.
  • 1 January and 31 March - you can apply online for free childcare for 2 year olds from 1 January. If the application is approved, you can then access a free place from the beginning of the term starting in April, following their second birthday.

To be authorised to offer free childcare, the childcare provider should be rated 'Good' or 'Outstanding' in their most recent Ofsted report.

Most families will be better off claiming free childcare than paying for childcare using Tax Credits. If you are eligible for the childcare element of Working Tax Credit/Universal Credit, check if your claim is affected by contacting Her Majesty’s Revenue and Customs (HMRC).

2 2 year old free childcare for working families

From 2 January 2024 applications opened for the new 2 year old free childcare for working families. This offer is available for those who work the equivalent of 16 hours at the national minimum wage, or more per week.

If you wish to use your code from the Summer term, which starts on 15 April 2024, ensure you apply prior to 31 March 2024.

If you apply for your code early in the year, please be aware that your code may need to be re-confirmed before 31 March 2024 for the Summer term.

You can apply if both parents are working (or the sole parent is working in a lone-parent family) and each parent earns:

  • less than £100,000 per year
  • more than the equivalent of 16 hours at the national living wage or minimum wage per week, for example, £120 per week if you are 25 or older. Apprentices are also eligible as long as they earn the equivalent of 16 hours at the apprentice minimum wage.

You may also be eligible if:

  • you and your partner are employed, but one or both of you is temporarily away from the workplace on parental, maternity or paternity, adoption leave, or on statutory sick pay
  • you are employed, but your partner either has substantial caring responsibilities, or is disabled or incapacitated, or vice versa (in other words, your partner is employed but you have caring responsibilities or are disabled or incapacitated) - this is dependent on you or your partner being entitled to specific disability or caring benefits such as:
    • incapacity benefit
    • carers allowance
    • contribution based employment and support allowance
    • severe disablement allowance
    • you are self-employed or on a zero hours contract and expect to meet the earning criteria on average over the next three months - if you are starting up your own business, you will not be expected to meet the minimum earning criteria in your first year of trading
    • you are not currently working, but are expecting to take up paid work within 14 days, as long as you expect to meet the income criteria over the coming three months.

This application must be made to the Government in advance, who then check that you are eligible and provide you with an eligibility code. To access the extended hours at a childcare provider for an age eligible child, you must apply for, and receive, your eligibility code by the applicable deadline below:

  • 31 December, to start accessing from the beginning of the term starting in January
  • 31 March, to start accessing from the beginning of the term starting in April
  • 31 August, to start accessing from the beginning of the term starting in September.

Please note: If you do not apply for, and receive, your eligibility code by the deadline, your child may not be able to access free childcare for the term.

How to apply

For further information and to apply, visit the Childcare Choices website below.

Apply online: 2 year old funding for working families (external link)

When your eligibility is confirmed, give your code to your chosen childcare provider. Every three months, you must reconfirm your eligibility online. The Government should remind you by SMS or email before the deadline.

If you provide false information you could face a fine of up to £3,000.

If you applied via Childcare Choices, but are not eligible for the 2 year old free childcare for working families, you may be eligible for 2 year old local authority (LA) issued free childcare.

3 2 year old LA issued free childcare (income-based benefits)

To qualify for LA Issued free childcare under this criteria, the child must be of eligible age and the parent(s) in receipt of one or more of the following income-based benefits:

How to apply

Apply online: Income-based benefit criteria (external link)

You will be asked to confirm:

  • your name
  • your address
  • the name, gender and date of birth of each child
  • your National Insurance Number or National Asylum Seeker's Service Number.

How we use your information

Privacy notice for parents

What happens next

We will review your application, checking whether your child is eligible for funding, and send you the outcome. If 2 year old free childcare is awarded, your child can start their free place at any point after their confirmed eligibility start date, which will be detailed in your award letter following your application. It will not be removed, even if your circumstances change.

Funding continues until the term after their third birthday, at which point they will become eligible for universal Free childcare for 3 and 4 year olds.

If you do not meet the criteria for free childcare we will contact you advising you to check your eligibility and, if applicable, re-apply in the future.

The processing time for your application may be up to 21 working days. If this period has elapsed, or you have lost your letter from us, email free.childcare@westsussex.gov.uk for help. If you asked us to email your outcome, please check your spam/junk folder before contacting us.

4 2 year old LA issued free childcare (other criteria)

To qualify for LA issued free childcare under these criteria, the child must be of eligible age and meet one of the following criteria:

  • They are a Child Looked After (where the County Council acts as the corporate parent).
  • They are adopted*.
  • They have a Special Guardianship Order*.
  • They have a special educational need or a disability (SEND). These children are eligible if the child either:

Alternatively, the family must meet one of the following criteria:

  • They are a child of a family with no recourse to public funds (NRPF)** (subject to a maximum annual household income threshold of £26,500 for families with one child, and £30,600 for families with two or more children). This includes children of:
    • Zambrano carers (persons from a non-EEA state whose residence is required in order to enable a child or dependant adult, who is British, to live in the UK)
    • families with no recourse to public funds with a right to remain in the UK on grounds of private/family life under Article 8 of the European Convention on Human Rights
    • families receiving support under Section 17 of the Children Act 1989 who are also subject to a no recourse to public funds restriction
    • those who have claimed asylum in the UK and are waiting for a decision (known as ‘part 6’)
    • a subset of failed asylum seekers supported under Section 4 of the Immigration and Asylum Act 1999
    • Chen carers
    • families holding a BN(O) passport
    • spousal visa holders
    • work visa holders
    • student visa holders
    • those with no immigration status
    • those with a UK Ancestry Visa
    • those with temporary protection status under Section 12 of the Immigration and Nationality Act
    • those with pre-settled status who do not meet the qualifying right to reside test.

*You will need to provide evidence when you apply.

**You will need to provide evidence of a Biometric Residence Permit, or your online immigration status share code. Proof of income is also required.

How to apply

Apply online: Other criteria (external link)

You will be asked to confirm:

  • your name
  • your address
  • the name, gender and date of birth of each child
  • the relevant eligibility criteria you are applying under and evidence, where requested.

Ensure you include your National Insurance Number or National Asylum Seeker's Service Number so we may also consider your application under income-based benefit criteria.

How we use your information

Privacy notice for parents

What happens next

We will review your application, checking whether your child is eligible for funding, and send you the outcome. If 2 year old free childcare is awarded, your child can start their free place at any point after their confirmed eligibility start date, which will be detailed in your award letter following your application. It will not be removed, even if your circumstances change.

Funding continues until the term after their third birthday, at which point they will become eligible for universal Free childcare for 3 and 4 year olds.

If you do not meet the criteria for free childcare we will contact you advising you to check your eligibility and, if applicable, re-apply in the future.

The processing time for your application may be up to 21 working days. If this period has elapsed, or you have lost your letter from us, email free.childcare@westsussex.gov.uk for help. If you asked us to email your outcome, please check your spam/junk folder before contacting us.

5 How to use and claim free childcare

If you are awarded free childcare, you should do the following:

1. Find out about the types of childcare providers that offer funded places for 2 year olds on Childcare options.

2. Use the Family Information Service's searchable database or contact us for a list of childcare providers who offer free childcare places.

3. Contact a range of childcare providers to see if they have a vacancy for your child. Arrange to visit as many as you wish and choose the one(s) which best meets your and your child's needs. Find additional information about what to consider.

4. Tell your chosen childcare provider(s) that you wish to access free childcare for your child. Take with you:

  • evidence of your child's date of birth (passport or birth certificate)
  • either your 11 digit eligibility code for 2 year old free childcare for working families, or your 2 year old LA Issued free childcare code found on your award letter.

It is important to inform your chosen childcare provider as soon as possible of your eligibility and intention to use free childcare.

You will be asked to complete and sign a ‘parent declaration’ form, where you will specify how many hours you wish to claim, and your child’s pattern of attendance (the days and hours they will be there). Your childcare provider must show you our privacy notice when you complete the form.

Your childcare provider will then be able to claim funding for your child’s free childcare place. If approved for:

  • 2 year old free childcare for working families, you must reconfirm your eligibility every three months. If your circumstances change and you no longer meet the eligibility criteria, you will fall into a ‘grace period’.

    For a short period, your child can continue to access their free childcare place at their existing childcare provider, up until the eligibility code’s grace period end date. Once the grace period has lapsed, your child will be unable to access free childcare unless you become eligible again, or until your child becomes eligible to access Universal Free Childcare, the term after their third birthday.

    If you fall out of eligibility for 2 year old free childcare for working families, you may wish to look at the eligibility criteria for our 2 year old LA issued free childcare.
  • 2 year old LA Issued free childcare, you can continue to access a free place even if your circumstances change.

6 Additional information

As a parent, you know your child best and should discuss your child’s needs with the childcare provider to help you decide how often your child should attend. A regular pattern of attendance is important to ensure your child’s continued development. You should aim to use your chosen childcare provider for as long as possible, avoiding the need to move your child every few months or term.

Providers that are open all year round may offer parents the flexibility to stretch the hours across the whole year, reducing the number of hours available each week, so that you do not exceed the yearly maximum. Note that this may result in slightly less hours per year, for example 11 hours per week for 51 weeks (561 hours per year) instead of 15 hours for 38 weeks (570 hours per year). Check this with your chosen childcare provider.

You can read the terms and conditions that childcare providers must follow in the provider declaration. Ensure you fully understand and agree to any terms and conditions before you accept a place.

Not all childcare providers will be able to deliver your preferred days/hours. However, the flexibility you need may be achieved by using more than one childcare provider, but not on more than two sites in one day. You must let the childcare provider know if you intend to split the funding across more than one childcare provider.

If you are planning to only access your child’s free hours, childcare providers must ensure that no fees or conditions of access are charged, including:

  • no registration/administration fees or non-refundable deposits
  • no requirement for a child to access additional hours on top of the free hours
  • no requirement for the child to access additional weeks on top of the funded weeks.

Your childcare provider should not charge you as the funding is for a free place rather than a subsidy towards your fees. However, they can set their own rates for any additional time or services that you take. They should let you know in advance what you will be expected to pay. You may be able to get extra help with any additional costs of your childcare place.

It is important you fully understand the childcare provider's admissions policy, which services are included, what they may charge for and any dates by which you need to make a claim.

Read our FAQs for more information about using the free hours:

7 Contact us

If you need help or any further information, contact us using the details below.

Last updated:
7 November 2024
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